Nothing speaks of Canada like massive wood structures, yet it will not be a lack of demand which hinders our growth, but lack of access to the raw material we need to create these buildings. The issue is accessing the fraction of the Annual Allowable Cut suitable for building with. Over the past several years, we have seen how the major forest companies' growing monopoly has negatively impacted many small-scale loggers and sorts which supply us. We support the open market system, since cost is not the barrier for our members. We have no issue paying fair market value for the wood we need-provided the wood is available in the first place.
Under BC Timber Sales, the Ministry of Forests has created three regulatory categories. Category 2 is where we would see the government making the most efficacious changes to positively address our issues, since this category is intended for value-added companies other than major licensees. In order to register for this category, a person must own or lease a timber processing facility in BC, and must not hold a pulpwood agreement or one or more major licences that together have an annual allowable cut of greater that 10,000 m3 (BC Reg. 265/88 4.3). Surrogate and proxy bidding occur when a larger forest licensee uses economic pressure to force a smaller entity, often a Category 2 registrant, to bid on a sale for them from which they would legally be excluded, and then sell the wood exclusively back to them. This, of course, prevents the smaller licensee from allowing other buyers access to that fibre volume, including log sorts. Hardly the "open and competitive market" envisioned by BC Timber Sales' strategic objectives.
We believe that private log sort yards are the most effective way to ensure adequate log supply, not only for our industry, but also all other key industries within the value-added forest sector. Sorts allow both loggers and log buyers to get a fair price for their wood without having to deal with each other on an individual basis. It also provides a "retail" environment for purchasers of small volumes and custom grades, such as log and timber builders, to fill their fibre needs in a time- and volume-sensitive matter. Neither individual loggers, nor major forest companies who have sorts, want to deal with buyers who are not volume-based, since volume is the orientation of their businesses. We envision a multiplicity of sources for these sorts, including independent loggers, salvors, First Nations Licensees, and community forests. Community forests are one of the best ways to not only sustainably employ the local population, but also attract small value-added manufacturers to the area. The BC log and timber industry employs numbers equal to some of the major licensees, yet provide greater local economic stability. It takes about 110 cubic meters of wood to keep one log or timber builder busy for one year, compared to roughly 2000 cubic meters per person in the mills. If the mission of BC Timber Sales is: "to market Crown timber to…capture the value of the asset for the public", the value-added wood sector, and specifically the log and timber building industry, can provide that value.
Therefore, the BC LTBI
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